Ponzi Scheme Beacon Income Funds
Texas Tea Gives You Gas
By selling interests in 29 limited partnerships, the principles of Beacon Income Funds defrauded approximately 1,100 investors, most of whom were senior citizens, who were told that the partnerships would invest in oil and gas production.
When the earlier partnerships had poor financial results the promoters used the funds contributed by investors in later partnerships to pay distributions to earlier investors.
The Beacon Income Funds paid distributions out to investors and the owners until the victims lost all of the $23 million they had invested
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